ASSESSMENT OF STRATEGIC MANAGEMENT AND ITS EFFECT ON ORGANIZATIONS PERFORMANCE
Chapter one
INTRODUCTION
1.1 Background of the Study
The economic environment is rapidly changing, driven by factors such as globalisation, evolving customer and investor expectations, and growing product-market competition. “Strategic management is an ongoing process that evaluates and controls the company’s business and industries, assesses its competitors, and sets goals and strategies to meet all existing and potential competitors
And then reassesses each strategy annually or quarterly (i.e. on a regular basis) to determine how well it has been implemented and whether it needs to be replaced” (Lamb, 1984).
Business organisations should strive for two key goals: acquiring a competitive advantage and increasing company performance in contrast to their competitors. (2009) (Raduan, Jegak, Haslinda, and Alimin).
Strategic management may be influenced by a company’s size and its willingness to adapt to changes in its business environment. A global multinational organisation may employ a more formal strategic management strategy due to its size, scope of activity, and need to consider stakeholder perspectives and requirements.
Major management theories, such as Chandler’s (1962) and Child’s (1972), both cited in Meier, O’Toole, Boyne, and Walker (2012), emphasise private enterprises’ ability to exercise strategic choice despite external constraints.
The way they tackle strategic difficulties can influence the organization’s overall growth and development. The strategic framework must handle fundamental considerations such as resource base, infrastructure limits, an acceptable level of technology, and raw material intake.
1.2 Statement of the Problem
In recent years, there has been a lot of focus on organisational performance. The amount to which an organization’s policies and programmes are implemented, as well as its strategic goals and vision, is a significant issue.
Managers in both private and public organisations are increasingly conscious that having an effective system for acquiring and managing human resources is crucial to gaining a competitive advantage. Indigenous products and services
the best public relations approach, cutting-edge technology, and an effective system for attracting and managing an organization’s human resources are all essential sources of competitive advantage.
Based on the preceding and current trends, it is apparent that the space of change in our business environment creates new difficulties on a regular basis. As a result, if the industrial industry is to successfully address its problems, a solution must be found.
As a result, many organisations must come up with innovative ideas in order to build distinct brands, consumer-friendly products/services, and competitive advantages in terms of brand preference and client trust.
Despite this, no research has been conducted in Nigeria to examine the overall impact of strategic management on organisational growth and development. In Nigeria, there are several studies aimed at enhancing human resource development (e.g., Oladipo and Abdulkadir, 2010; Oladipo and Abdulkadir, 2011; Abdulkadir, 2012).
This study was related to research on strategic planning (a subset of strategic management) (Ilesanmi, 2011; Akinyele & Fasogbo, 2007). None of the studies in Nigeria examined the impact of strategic planning management on the industrial sector.
To that end, the goal of this research is to look into how manufacturing enterprises in Anambra State might use strategic management to create successful growth and development strategies.
1.3 STUDY OBJECTIVE.
The overall purpose of the study is to:
Investigate how strategic management affects organisational performance.
Investigate the elements that work against strategic management in the Krisoral group of enterprises.
Investigate the impact of strategic management on company sustainability in a competitive market.
1.4 RESEARCH QUESTIONS
The research questions listed below influence the study’s objective.
How does strategic management affect organisational performance?
What are the variables that work against strategic management in the Krisoral group of companies?
Is strategic management beneficial to a company’s long-term viability in the competitive market?
1.5 Significance of the Study
This research will also contribute to the existing body of literature on the issue and serve as a resource for academics, researchers, and students interested in undertaking future research on this or a related topic.
1.6 SCOPE OF THE STUDY
The study aims to explore the impact of strategic management on organisational performance, as well as the strategic approach used by Krisoral group management, and finally, the impact of strategic management on competition. The Krisoral group of companies is situated in Onitsha, Anambra state.
1.7 Limitations of the Study
The study was limited to the Krisoral group of enterprises, so the results will be based on the responses from that specific group.
1.8 Definition of Terms
STRATEGIC MANAGEMENT: Strategic management is the ongoing planning, monitoring, analysis, and evaluation of all the resources required for an organisation to achieve its goals and objectives.
ORGANISATIONAL PERFORMANCE: Organisational performance is the actual production or results of an organisation as compared to its expected output.